Coinbase Halts FLOKI, TURBO, GIGA Trading in New York
Coinbase, the leading cryptocurrency exchange in the United States, has announced that it will suspend trading of three memecoins—Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA)—in the state of New York, starting April 14, 2025 at 2 p.m. ET. The decision comes after Coinbase conducted a routine review of its listed assets to ensure compliance with applicable standards and regulations.
Reason for the suspension
While Coinbase did not provide specific details on the reason for the suspension, many legal experts believe the move may be related to ongoing legal issues in New York. "I would bet that this is related to a pending lawsuit in New York," said Ariel Givener, founder of GivenerLaw.
Previously, in January 2023, Coinbase reached a $100 million settlement with New York regulators after failing to meet compliance standards, violating state banking laws and regulations related to virtual currencies and cybersecurity. Additionally, in February 2025, a federal judge ruled that Coinbase must face a lawsuit alleging that the platform illegally sold unregistered securities. These legal challenges may have prompted Coinbase to make the decision to suspend trading of memecoins in New York to mitigate legal risks.
Market Reaction
Following Coinbase's announcement, the market reacted differently to the affected coins. In the past 24 hours, the price of Floki (FLOKI) dropped 1%, Gigachad (GIGA) dropped 13%, while Turbo (TURBO) increased 3.5%.
SEC's Stance on Memecoins
In another development, the U.S. Securities and Exchange Commission (SEC) has reaffirmed that memecoins are generally not considered securities under federal law. The SEC clarified that memecoins do not generate profits or grant rights to a company's earnings, profits, or assets, and therefore do not require registration with the SEC under the Securities Act of 1933. However, the SEC also warned that some projects labeled as "memecoins" may still fall under securities law if they operate as investment contracts.
Conclusion
Coinbase's suspension of FLOKI, TURBO, and GIGA trading in New York reflects the exchange's efforts to comply with regulatory requirements and mitigate risk. The move also underscores the importance of regulatory compliance in the cryptocurrency market, especially for memecoins.